"If there is a regime shift, then what has worked could be quite different from what does work," McLennan said.
That means the growth stocks that dominated for years may come back to earth in the mid-2020s.
He also recommends that investors diversify away from growth stocks that thrived under low rates and instead broaden out to value-oriented names.
Valuations explain 80% of a stock's returns over a decade, according to Bank of America.
Smead sees energy in stocks in Canada also outperforming in the coming decade, as well as European banks.
Persons:
—, Peter Bates, Rowe Price, Damanick Dantes, We're, Dantes, you've, He's, Matt McLennan, McLennan, Kimball Brooker, Morningstar, Nicola Stafford, Stafford, it's, Molina, Bates, Russell, Cole Smead, that's, Phillip Colmar, Colmar, Bob Doll, Doll, Smead, Michael Sheldon, Sheldon, who's, there's, Chris Chen, Chen, Roth
Organizations:
Service, Business, Global, International, McLennan, First Eagle Global Fund, Eagle Investments, Goldman, Asset Management, Stock, Molina Healthcare, Vanguard Value, Healthcare, Bank of America, Comerica Wealth Management, MRB Partners, Canadian, Crossmark Global Investments, BlackRock, Energy, P Bank ETF, RDM Financial, Social Security, Social, Insight Financial, Trust, IRA
Locations:
Canada, Colmar, United States, Canadian, Europe, Treasuries